How Does Ramp Make Money?

Ramp is a UK-based fintech startup that offers a corporate card and expense management platform. Whether you’re a small business or a large enterprise, Ramp promises to help you save time and money by streamlining your expense processes. But how…

Ramp is a UK-based fintech startup that offers a corporate card and expense management platform. Whether you’re a small business or a large enterprise, Ramp promises to help you save time and money by streamlining your expense processes. But how does Ramp make money? In this article, we’ll take a closer look at Ramp’s revenue model and explore the ways in which the company generates income. So, let’s dive in and discover the secrets behind Ramp’s success!

How Does Ramp Make Money?

How Does Ramp Make Money?

Ramp is a popular financial technology company that offers a range of innovative financial services to businesses of all sizes. The company has been gaining a lot of attention lately, thanks to its unique approach to providing financial solutions, from expense management to corporate cards. But how does Ramp make money? In this article, we’ll explore the revenue streams that Ramp uses to generate income.

1. Interchange Fees

Ramp’s primary revenue stream comes from interchange fees. When a Ramp corporate card is used to make a purchase, the merchant pays a fee to the card issuer (in this case, Ramp). This fee is typically a percentage of the transaction amount. Ramp earns a portion of this fee, which adds up over time as more and more businesses use Ramp’s cards for their expenses.

Interchange fees are an important source of revenue for Ramp, as they provide a steady stream of income that can be relied upon. The company has negotiated competitive rates with card networks and processors, which allows them to keep their fees low and attract more customers.

2. Subscription Fees

Another way that Ramp makes money is through its subscription service. Businesses that use Ramp’s expense management platform pay a monthly fee for access to the software. The platform offers a range of features, including automated expense tracking, receipt capture, and accounting integrations.

The subscription fee model is a popular one in the software industry, as it provides a predictable source of revenue that can be used to fund ongoing development and expansion. For Ramp, the subscription fees help to offset the costs of managing and maintaining the platform, as well as funding new product development.

3. Interest on Balances

Ramp also earns interest on the balances that are carried on its corporate cards. When businesses use Ramp’s cards, they are essentially borrowing money from the company. Ramp charges interest on balances that are not paid off in full each month, which can add up over time.

This revenue stream is not as significant as the interchange fees or subscription fees, but it does provide a supplementary source of income for Ramp. The company has competitive interest rates that are designed to be fair and transparent for its customers.

4. Foreign Exchange Fees

For businesses that operate internationally, Ramp offers foreign exchange services that allow them to make payments and receive funds in different currencies. Ramp charges a fee for these services, which can be a percentage of the transaction amount or a flat fee.

Foreign exchange fees are a relatively small source of income for Ramp, but they do provide an important service for businesses that operate globally. The company’s competitive rates and transparent pricing make it an attractive option for businesses that need to make international payments.

5. Late Payment Fees

Finally, Ramp earns revenue from late payment fees. If a business fails to make a payment on its Ramp corporate card, the company may charge a fee to cover the cost of managing the delinquent account. Late payment fees are a last resort for Ramp, as the company prefers to work with its customers to find solutions for any issues that arise.

Late payment fees are not a significant source of income for Ramp, but they do provide a way for the company to cover its costs when a customer fails to pay on time.

In conclusion, Ramp uses a variety of revenue streams to generate income, including interchange fees, subscription fees, interest on balances, foreign exchange fees, and late payment fees. By diversifying its income sources, Ramp is able to create a sustainable business model that can weather economic downturns and changes in the financial industry.

Frequently Asked Questions

Here are the answers to some common questions about Ramp’s revenue model:

What is Ramp and how does it work?

Ramp is a financial technology company that provides corporate credit cards and expense management software to businesses. The company’s platform integrates with accounting software and allows businesses to easily track and manage their expenses.

Ramp makes money by charging businesses a fee for using its services. This fee is typically a percentage of the total amount spent on the Ramp card, and may also include a monthly subscription fee for access to the platform.

Does Ramp charge interest on its credit cards?

No, Ramp does not charge interest on its credit cards. Instead, the company makes money by charging businesses a fee for using its services.

However, businesses that use Ramp are required to pay their credit card bills in full each month. If they do not, they may be subject to penalties and fees from Ramp and their credit card issuer.

What other fees does Ramp charge?

In addition to its subscription and transaction fees, Ramp may also charge businesses for other services such as cash advances, international transactions, and card replacements.

These fees vary depending on the specific terms of the business’s agreement with Ramp, and may be subject to change over time.

How does Ramp compare to other expense management software?

Ramp’s platform is designed to be more user-friendly and intuitive than traditional expense management software. The company’s software integrates with popular accounting programs like QuickBooks and Xero, allowing businesses to easily track and categorize their expenses.

Ramp also offers real-time spending alerts and other features that help businesses stay on top of their finances. However, compared to other expense management software, Ramp may be more expensive due to its transaction and subscription fees.

What is Ramp’s business model for the future?

As of now, Ramp’s primary revenue stream comes from its corporate credit card and expense management services. However, the company has stated that it plans to expand its offerings in the future to include other financial products and services.

For example, Ramp may eventually offer banking services or investment products for businesses. However, the company has not provided specific details on its future business model and strategy.

Meet Ramp: the finance automation platform that saves you time & money


In conclusion, Ramp is a financial technology company that offers businesses a smarter way to manage their expenses. They help businesses save money by reducing the cost of foreign currency transactions and providing transparent pricing.

Ramp makes money by charging a small fee to businesses for each transaction made using their platform. This fee is typically lower than what traditional banks charge, making Ramp a cost-effective solution for businesses looking to save money on their expenses.

Overall, Ramp’s innovative approach to expense management has helped them to quickly grow their customer base and become a leading player in the fintech industry. With their unique value proposition and commitment to transparency, Ramp is well-positioned to continue to be a major player in the financial services space for years to come.

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